Mr. James Howard-Tripp reports
GENENEWS ANNOUNCES Q3 2018 RESULTS AND PROVIDES PROGRESS UPDATE
GeneNews Ltd. has provided operational and financial results for the three-month and nine-month periods ended Sept. 30, 2018, and has provided a progress update on its business.
All amounts are expressed in U.S. dollars unless otherwise stated and results are reported in accordance with international financial reporting standards.
"Billing revenue is up markedly (plus 81 per cent) from a year ago when we began the process of switching billing companies, and very significantly from last quarter (654 per cent) as the new process gains traction," commented James R. Howard-Tripp, GeneNews's chairman and chief executive officer. "Q3 tests started aggressively, with test volume up 40 per cent during July, but the full quarter was impacted by the hurricanes that affected the south and southeast of the U.S., our larger customer states. Test volume in October is again showing growth, with testing of high-risk employees contributing."
Mr. Howard-Tripp further commented: "Our partnership with LifeX to expand the adoption and use of GeneNews's liquid biopsy, molecular diagnostics for the early diagnosis of cancer into large, multientity health care systems is progressing well, as is the second objective to fully develop and market GeneNews's Aristotle platform, specifically, the first-in-class early detection of 10 cancers from a single sample of blood. It is GeneNews and LifeX's intent to have a transformational effect on early cancer screening and diagnosis."
Q3 2018 financial results
For the three-month period ended Sept. 30, 2018, the company reported a consolidated net loss of $700,000, or one-cent loss per common share, as compared with a consolidated net loss of $600,000, or one-cent loss per common share, for the three-month period ended Sept. 30, 2017. The $70,000 increased loss results from the $70,000 impact of the revaluation of warrants, two-cent change in fair value of conversion liability, the one-cent increase in finance costs, the $100,000 increase in cost of goods sold, offset by the $40,000 increase in revenue and $100,000 reduction in general and administrative costs.
For the nine-month period ended Sept. 30, 2018, the company reported a consolidated net loss of $3.9-million, or three-cent loss per common share, as compared with a consolidated net loss of $2.6-million, or four-cent loss per common share, for the nine-month period ended Sept. 30, 2017. The $1.3-million increased loss results from the $700,000 impact of the revaluation of warrants, $600,000 change in fair value of conversion liability, the $600,000 increase in finance costs and the $200,000 decline in test revenue, offset by $600,000 lower general and administrative expenses, and $200,000 lower cost of goods sold.
During the third quarter of 2018, the company leveraged the significant financing initiatives in Q2 2018 to support its four primary growth area initiatives including: small independent practices, high-risk populations/employers, telemedicine and large health care systems. JTS continues to assist with the new billing process at IDL which has improved the company's cash collections on a quarter-over-quarter basis. Revenue from tests was $98,000 this quarter compared with $54,000 in Q3 2017 and the $13,000 in Q2 2018. Invoicing for tests run but not billed during the company's transition to the new billing process continues to be submitted to payers and followed up with patients, and the company expects collections on these amounts to continue to be collected over the next few quarters.
The company's financial statements and management's discussion and analysis are available on SEDAR.
About GeneNews Ltd.
GeneNews, an innovator in the liquid biopsy space, is committed to becoming a leader in advanced diagnostics and personalized medicine, serving as a strong commercialization outlet for early detection of cancer and other chronic diseases. The company's mission is to identify, assess and make commercially available a comprehensive menu of diagnostics that provide physicians and patients with personalized clinical intelligence and actionable information to improve health outcomes through the early diagnosis of disease. The company's innovative diagnostic laboratory clinical reference lab, based in Richmond, Va., specializes in traditional and advanced clinical evidence-based blood testing that helps find, understand and address cancer risk in patient populations. Currently, IDL offers risk assessment blood tests for four prevalent cancer types -- colon, lung, prostate and breast.
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